CoStar Group (CSGP) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $732 million, up 12% year-over-year, marking the 56th consecutive quarter of double-digit growth, driven by segment and acquisition gains.

• Adjusted EBITDA was $66 million, a 429% increase year-over-year, at the top end of guidance.

• Net loss was $14.8 million, impacted by acquisition-related costs, including a $31 million charge from the Matterport acquisition.

• Completed the $1.9 billion Matterport acquisition and made a non-binding offer to acquire Domain Group in Australia.

• Cash and equivalents totaled $3.8 billion at quarter-end, down from $4.7 billion at year-end 2024 due to acquisition spending.

Financial highlights

• Q1 revenue: $732.2 million (+12% YoY); Adjusted EBITDA: $66 million (+429% YoY); Net loss: $14.8 million due to one-time Matterport acquisition costs.

• Gross profit rose 12% to $578.9 million, with gross margin improving to 79%.

• Operating expenses increased 11% to $621.7 million, driven by personnel, professional services, and acquisition costs.

• Subscription revenue on annual contracts was 80% of total revenue; 96% of Q1 2025 revenue from subscriptions.

• Share repurchases: 240,000 shares for $18.5 million in Q1; $150 million planned for 2025.

Outlook and guidance

• Full-year 2025 revenue expected at $3.115–$3.155 billion (+14–15% YoY), with Matterport contributing 4–5 percentage points.

• Q2 2025 revenue guidance: $770–$775 million (+14% YoY midpoint).

• 2025 adjusted EBITDA forecast: $355–$385 million (12% margin); Q2 adjusted EBITDA: $50–$60 million.

• Expect increased selling and marketing expenses for Homes.com and Matterport integration.

• Apartments.com full-year revenue growth guidance: 11–12%; LoopNet: 7–8%; Residential: mid-teens to low 20%.